Coinbase Users Losing $300 Million Per Year to Social Scams, According to ZachXBT

ZachXBT Highlights $300M Annual Loss from Social Engineering Scams Targeting Coinbase Users

Crypto researcher ZachXBT has revealed that Coinbase users are losing an estimated $300 million annually to social engineering scams, with $65 million of that figure occurring within the past two months alone. This alarming statistic was shared by ZachXBT in a post on X on Monday.

The actual losses may be even higher, as many scam incidents are never reported, according to the analyst. Coinbase has not issued an official statement on the matter but referred to a blog post published on Monday that provides guidance on how users can identify and avoid these types of attacks.

Social engineering scams typically involve the use of stolen personal data to impersonate Coinbase in communications. Scammers often send fake emails, mimicking official messages, and trick users into transferring funds to fraudulent wallets.

ZachXBT pointed out that scammers often create nearly identical versions of the Coinbase website and use fake email prompts to deceive users. He also noted that the main perpetrators are a mix of hackers from the Com region and cybercriminals based in India, with a primary focus on U.S. customers.

In response to Coinbase’s recommendation for users to stop using VPNs to avoid being flagged as suspicious, ZachXBT criticized the exchange for not addressing the real problem and highlighted that scammers intentionally block VPN access on phishing sites.

To mitigate these threats, ZachXBT suggested that Coinbase could improve security by making phone number verification optional, implementing a restricted account type for new users, and bolstering educational efforts to help users identify scams.

About The Author

Admin

See author's posts